Foreign Nationals Living in the United States
A foreign national who lives in the United States is taxed on worldwide income once resident for income tax purposes, and on the worldwide estate once domiciled here. The two tests differ, and the plan has to follow both.
Law stated as of October 2026
In brief.
- Income tax residence follows the green card test or the substantial presence test. Estate tax domicile follows residence combined with the intention to remain.
- A US domiciliary is taxed on the worldwide estate, with the full exclusion, whatever the citizenship.
- Gifts to a spouse who is not a US citizen qualify for an increased annual exclusion instead of the unlimited marital deduction.
- Property passing at death to a spouse who is not a US citizen needs a qualified domestic trust for the marital deduction, unless a convention provides relief.
- Foreign accounts, companies and trusts bring FBAR, Form 8938, Form 5471 and Form 3520 filings from the first year of residence.
A Guide for Financial Advisors, Tax Advisors and Estate Planners. About 530 pages. To be published in mid-December 2026; USD 225.
Pre-orderGermans living in the United States find the same material in German on Vermoegen-USA.com; French speakers find it in French on patrimoine-americain.com.
From the year before arrival to departure
- Before arrival
Basis, trusts and the restructuring of foreign companies and funds belong in the twelve months before US residence begins.
- The years of residence
A plan for two countries: wills that work in both, beneficiary designations, and the reporting of foreign accounts and entities.
- Marriage and children
The marital property regime brought from abroad, gifts to a spouse who is not a citizen, and the QDOT or the treaty alternative.
- Retirement
US retirement accounts, foreign pensions and the treaty article that decides where they are taxed.
- Leaving the United States
The end of residence, the exit tax for long-term residents and the estate tax position after departure.
Households with particular questions
Diplomats and staff of international organizations
Domicile under the Vienna Conventions, situs and treaty relief for holders of A and G visas.
A spouse who is not a citizen
Lifetime gifts, the marital deduction at death and the qualified domestic trust.
Owners of a foreign company
Controlled foreign corporation rules, Form 5471 and elections before arrival.
Children and heirs abroad
Bequests and trust distributions to heirs who live outside the United States.
Material for foreign nationals living here
The filter opens with foreign nationals living in the United States selected.
Start with the facts of the household
Citizenships, residence, the year of arrival, the assets in each country and the heirs. The firm replies with the questions that need an answer and how it would charge for the work.
